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Sebi bans Seashore Securities, directors from markets

PTI | Sep 25, 2018, 22:48 IST

New Delhi, Sep 25 () Sebi has banned Odisha-based Seashore Securities and its six present and former directors from the securities markets for at least four years and directed them to refund over Rs 503 crore collected illegally from investors.

New Delhi, Sep 25 () Sebi has banned Odisha-based Seashore Securities and its six present and former directors from the securities markets for at least four years and directed them to refund over Rs 503 crore collected illegally from investors.

The present directors are Prashanta Kumar Dash, Sapna Jena and Gopal Chandra Sahu, while the former are Pravat Kumar Dash, Jyotirani Sarangi and Sudhanshu Shekhar Pati.

According to a Sebi order dated September 24, Seashore had issued and allotted redeemable preference shares (RPS) to a minimum of 76,758 investors during the financial years 2008-09, 2009-10, 2010-11, 2011-12 and 2012-13 and raised at least Rs 503.23 crore.

Since the shares were issued to over 49 people, the offer of RPS qualified to be a 'public issue' and required compulsory listing of securities on a recognised stock exchange. However, the company did not comply with the provision.

Among other requirements, the firm had to register a prospectus with the Registrar of Companies (RoC), which it failed to do.

Apart from banning the firm and directors from the securities market, the regulator has also restrained the latter from associating themselves with any listed public company for at least four years.

The seven entities also have to refund the investors with an annual interest of 15 per cent.

However, all the movable and immovable properties of the companies and directors have been seized by the Crime Branch (EOW) of Odisha since 2013. Also, the government of Odisha by exercising its power under the Odisha Protection of Interests of Depositors Act, 2011 through its ad-interim order of attachment, has attached their properties and transferred the same to a competent authority, according to the Sebi ruling.

The regulator noted that Crime Branch (EOW) has filed a complaint before ACJM (Special), Cuttack, for seeking the declaration from the court to pass an order making the ad-interim order of attachment absolute.

Hence, the "effect and implementation" of the direction to refund the investors stated is subject to the order passed by ACJM (Special), the Securities and Exchange Board of India (Sebi) said. VRN MR

(This story has not been edited by timesofindia.com and is auto–generated from a syndicated feed we subscribe to.)

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